The benchmark Dax index gained significantly at the start of the week, closing Xetra trading at 24,307 points, marking a gain of 1.5% compared to the previous day’s close.
Market analyst Andreas Lipkow of CMC Markets credited the major turnaround to the news that Iran presented a five-point plan aimed at ending the conflict. He noted that even though the market opened in negative territory, investors immediately began snapping up assets priced below 24,000 points, pushing the index into positive ground. This initial momentum was further boosted by midday news circulating about a possible compromise between the US and Iran, which saw the Dax peak above 24,400 points.
Throughout the session, the market was largely supported by technology stocks such as Infineon and SAP. Investor focus also remained keen on AI-related stocks from Siemens Energy and Siemens. Optimism is growing that the situation in the Middle East may stabilize soon; while this positive expectation has been building over several weeks, today’s news has given it fresh momentum.
The positive trend allowed the list of outperforming sectors to broaden. Rheinmetall led the gains, followed by Deutsche Telekom and SAP. Conversely, investors remained cautious regarding cyclical industries, particularly the auto sector. Shares from major manufacturers like VW, Mercedes-Benz, BMW, and Porsche recorded losses, concluding the day in negative territory within the index.
Lipkow concluded that overall market sentiment will remain characterized by skepticism regarding the prompt resolution of peace in Iran. He pointed out that rising energy prices are applying downward pressure on consumer spending via inflation, fueling fears of a continuation of economic weakness in Germany.
In other market segments-the European currency rose moderately, trading at 1.1648 US dollars per euro, meaning a dollar cost 0.8585 euros. Gold prices experienced a slight increase, reaching $4,544 per fine ounce, a 0.1% gain, equivalent to 125.42 euros per gram. Meanwhile, oil saw a notable rise, with a barrel of Brent crude priced at $110.80 at the close of German trading time, representing a 1.4% increase from the previous day’s session.
